FedEx Closing Stores and Issuing Hiring Freeze

FedEx officials have announced some of its stores are closing, thanks to a drop in demand in the company's global package delivery business.

FedEx CEO Raj Subramaniam said first quarter results were well below expectations, adding he expects business conditions to continue to weaken.  He added that package volume has been declining because of a cooling-off of pandemic-era online shopping costs.

Subramaniam said officials are in the process of tightening the company's belt and will cut costs by closing over 90 FedEx Office locations and five corporate offices across the country.  FedEx will also suspend Sunday ground operations, operate fewer cargo flights and put a hiring freeze into effect for the time being.

Subramaniam said, "We have dealt with economic crisis before.  Cycles come and go.  To be very clear, we are not assuming a deep economic recession.  If the economy slows down to a mild recession, we can manage through it."